Common use of Property Accounts Clause in Contracts

Property Accounts. (a) All funds received by Property Manager derived from the operation of the Property, as well as working capital furnished by Owner, shall be deposited in an account (the "Property Bank Account") in Property Manager’s name, as agent for Owner, in an FDIC-insured bank designated or approved by Owner, which such account will be in compliance with applicable law. Owner may direct Property Manager to change depository banks or the depository arrangements. All funds so deposited shall be deemed to be trust funds held by Property Manager for the benefit of Owner and shall be held and disbursed as provided herein. Property Manager shall establish another custodial and/or trust account as required by applicable law or the Owner for the deposit of tenant security deposits (the "TSD Account"). (b) A Working Capital Reserve equal to Fifty Thousand Dollars ($50,000) (the "Working Capital Reserve") shall be funded upon execution of this Agreement and maintained in the Property Bank Account at all times throughout the term of the Agreement. A monthly cash payment will be made by Property Manager to Owner solely from funds in the Property Bank Account in excess of the amount of the Working Capital Reserve in an amount equal to the excess, if any, of the current month projected cash receipts less the current month's budgeted operating and capital expenditures. This payment will be made to Owner on or before the tenth (10th) day of each month. A reconciliation of receipts and expenditures will be prepared by Property Manager in accordance with Section 6.02 above to account for any prior period operating cash overage or shortage and any additional cash payments due to Owner will be made to Owner no later than the twenty-fifth (25th) day of the current month and any overpayments made to Owner will be returned to Property Manager for deposit in the Property Bank Account no later than the thirtieth (30th) day of the current month. (c) No non-Property funds shall be commingled with the funds in the Property Bank Account or TSD Account (collectively, the "Accounts"). Property Manager may not, under any circumstances, write a check payable to or in favor of, or transfer funds to, Property Manager or any Affiliate of Property Manager from the Accounts other than to (i) reimburse itself or an Affiliate for expenditures made on behalf of Owner and approved by Owner, or (ii) pay itself the Management Fee or other fee payable hereunder; provided that, within fifteen (15) days after payment to itself of the Management Fee or other fee, Property Manager shall provide Owner with a statement setting forth the calculations made in computing the Management Fee or other fee in detail reasonably satisfactory to Owner. Only those persons specifically authorized by Property Manager and approved by Owner shall have authority to write checks from the Property Bank Account. There shall be monetary limits on the checks Property Manager shall be authorized to write. Checks in excess of $25,000 (excluding debt service and those items provided for in the Approved Operating Budget) shall require the prior written consent of Owner.

Property Accounts. (a) All funds received by Property Manager derived from the operation of the Property, as well as working capital furnished by Owner, shall be deposited in an account (the "“Property Bank Account"”) in Property Manager’s name, as agent for Owner, in an FDIC-insured bank designated or approved by Owner, which such account will be in compliance with applicable law. Owner may direct Property Manager to change depository banks or the depository arrangements. All funds so deposited shall be deemed to be trust funds held by Property Manager for the benefit of Owner and shall be held and disbursed as provided herein. Property Manager shall establish another custodial and/or trust account as required by applicable law or the Owner for the deposit of tenant security deposits (the "“TSD Account"”). (b) A Working Capital Reserve equal to Fifty Thousand Dollars ($50,000) (the "“Working Capital Reserve"”) shall be funded upon execution of this Agreement and maintained in the Property Bank Account at all times throughout the term of the Agreement. A monthly cash payment will be made by Property Manager to Owner solely from funds in the Property Bank Account in excess of the amount of the Working Capital Reserve in an amount equal to the excess, if any, of the current month projected cash receipts less the current month's ’s budgeted operating and capital expenditures. This payment will be made to Owner on or before the tenth (10th) day of each month. A reconciliation of receipts and expenditures will be prepared by Property Manager in accordance with Section 6.02 above to account for any prior period operating cash overage or shortage and any additional cash payments due to Owner will be made to Owner no later than the twenty-fifth (25th) day of the current month and any overpayments made to Owner will be returned to Property Manager for deposit in the Property Bank Account no later than the thirtieth (30th) day of the current month. (c) No non-Property funds shall be commingled with the funds in the Property Bank Account or TSD Account (collectively, the "“Accounts"”). Property Manager may not, under any circumstances, write a check payable to or in favor of, or transfer funds to, Property Manager or any Affiliate of Property Manager from the Accounts other than to (i) reimburse itself or an Affiliate for expenditures made on behalf of Owner and approved by Owner, or (ii) pay itself the Management Fee or other fee payable hereunder; provided that, within fifteen (15) days after payment to itself of the Management Fee or other fee, Property Manager shall provide Owner with a statement setting forth the calculations made in computing the Management Fee or other fee in detail reasonably satisfactory to Owner. Only those persons specifically authorized by Property Manager and approved by Owner shall have authority to write checks from the Property Bank Account. There shall be monetary limits on the checks Property Manager shall be authorized to write. Checks in excess of $25,000 (excluding debt service and those items provided for in the Approved Operating Budget) shall require the prior written consent of Owner.

Property Accounts. (a) All funds received by Property Manager derived from the operation of the Property, as well as working capital furnished by Owner, shall be deposited in an account (the "“Property Bank Account"”) in Property Manager’s name, as agent for Owner, in an FDIC-insured bank designated or approved by Owner, which such account will be in compliance with applicable law. The Property Bank Account will include, if available, services to deter check fraud and other unauthorized bank transactions. Owner may direct Property Manager to change depository banks or the depository arrangements. All funds so deposited shall be deemed to be trust funds held by Property Manager for the benefit of Owner and shall be held and disbursed as provided herein. Property Manager shall establish another custodial and/or trust account as required by applicable law or the Owner for the deposit of tenant security deposits (the "“TSD Account"”). (b) A Working Capital Reserve equal to Fifty Thousand Dollars ($50,000) (the "“Working Capital Reserve"”) shall be funded upon execution of this Agreement and maintained in the Property Bank Account at all times throughout the term of the Agreement. A monthly cash payment will be made by Property Manager to Owner solely from funds in the Property Bank Account in excess of the amount of the Working Capital Reserve in an amount equal to the excess, if any, of the current month projected cash receipts less the current month's ’s budgeted operating and capital expenditures. This payment will be made to Owner on or before the tenth (10th) day of each month. A reconciliation of receipts and expenditures will be prepared by Property Manager in accordance with Section 6.02 above to account for any prior period operating cash overage or shortage and any additional cash payments due to Owner will be made to Owner no later than the twenty-fifth (25th) day of the current month and any overpayments made to Owner will be returned to Property Manager for deposit in the Property Bank Account no later than the thirtieth (30th) day of the current month. (c) No non-Property funds shall be commingled with the funds in the Property Bank Account or TSD Account (collectively, the "“Accounts"”). Property Manager may not, under any circumstances, write a check payable to or in favor of, or transfer funds to, Property Manager or any Affiliate of Property Manager from the Accounts other than to (i) reimburse itself or an Affiliate for expenditures made on behalf of Owner and approved by Owner, or (ii) pay itself the Management Fee or other fee payable hereunder; provided that, within fifteen (15) days after payment to itself of the Management Fee or other fee, Property Manager shall provide Owner with a statement setting forth the calculations made in computing the Management Fee or other fee in detail reasonably satisfactory to Owner. Only those persons specifically authorized by Property Manager and approved by Owner shall have authority to write checks from the Property Bank Account. There shall be monetary limits on the checks Property Manager shall be authorized to write. Checks in excess of $25,000 (excluding debt service and those items provided for in the Approved Operating Budget) shall require the prior written consent of Owner.